14-05-2025
Venkys (India) Ltd (BOM:523261) Q4 2025 Earnings Call Highlights: Navigating Growth Amidst ...
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
The animal health product segment showed a growth of around 20-21% year-over-year, indicating strong performance and potential for future growth.
The company reported an increase in poultry segment revenue from INR 1,755 crore in FY24 to INR 1,927 crore in FY25, reflecting a 10% growth.
Venkys (India) Ltd (BOM:523261) is expanding its SPF (Specific Pathogen Free) capacity, which is expected to enhance production capabilities and meet increasing demand.
The company is venturing into ready-to-cook spices, which is expected to have good potential in both local and export markets.
The animal health segment is expected to see a top-line growth of 15% in FY26, supported by new product lines and increased capacity utilization.
Profit margins in the poultry segment were negatively impacted due to a fall in broiler bird realization prices and increased maize costs.
The company faced challenges in the oil segment, with profitability not improving significantly despite anti-dumping duties on oils.
There was a significant increase in receivables, particularly from the parent company, raising concerns about cash flow management.
The poultry segment's EBIT fell significantly in Q4 due to lower consumption during the Kumbh Mela, impacting overall profitability.
The company is facing competitive pressure from other players like IB Group, which have shown higher revenue growth rates in the poultry segment.
Warning! GuruFocus has detected 4 Warning Signs with BOM:523261.
Q: Can you provide the average realization for broiler and DOC for this quarter compared to last quarter and the same quarter last year? A: The broiler bird realization for Q4 FY25 was approximately ?78 per kg, compared to ?87 in Q4 FY24. For DOC, the realization was ?39 in Q4 FY25, up from ?35 in Q4 FY24. (Respondent: Unidentified_5)
Q: What is the current trend in broiler pricing as summer has started? A: In April, the realization for broiler birds was not satisfactory due to panic sales caused by heat waves, with prices around ?80 to ?81. The chick realization was approximately ?308. (Respondent: Unidentified_5)
Q: Given the current realizations, under what scenario will the company make satisfactory margins? A: The industry has seen consistent growth in poultry placement and production. However, increased productivity and occasional consumption patches affect realizations. The company is adjusting to these dynamics, but production cycles cannot be easily altered to match consumption levels. (Respondent: Unidentified_5)
Q: How has the anti-dumping duty on oils affected profitability in the oil segment? A: The government increased duties on edible oils to support local farmers, which initially affected profitability. However, the market has stabilized, and improvements are expected in the coming months. (Respondent: Unidentified_7)
Q: What was the per kg cost of maize and soya for Q4? A: The cost of maize for Q4 FY25 was ?24.50 per kg, compared to ?23.50 in Q4 FY24. The soya DOC price was ?31.20 per kg for Q4 FY25, down from ?44.30 in Q4 FY24. (Respondent: Unidentified_5)
Q: What are the plans for the oil division given the impact of DDGS as a substitute for DOC? A: The company acknowledges the impact of DDGS but believes soya DOC has better protein availability and digestibility. The company expects stabilization in the market and sees potential for growth in the oil division. (Respondent: Unidentified_7)
Q: What is the expected volume growth in the broiler and soya segments for this year? A: The company expects a 25% growth in the soya segment and a 5% to 10% growth in the poultry segment, depending on realizations. (Respondents: Unidentified_7 and Unidentified_5)
Q: Can you explain the sudden jump in other expenses? A: Other expenses increased by 7% to ?18.90 crore, primarily due to go-down expenses for feed storage across 28 branches. There is no major change from the previous year. (Respondent: Unidentified_4)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
